Do CEO characteristics matter for corporate risk taking? Evidence from Russia

Abstract

Purpose This paper aims to study the impact of CEOs’ personality and social connections on corporate risk-taking in the Russian market. Design/methodology/approach Using a sample of 93 large listed Russian corporations between 2008 and 2016, this study tests a range of personal traits, including the classical personal characteristics like age and tenure, some country-specific traits such as connections and military experience, as well as other human and social capital characteristics. Findings This study finds non-linear relationships between corporate risk-taking and CEO age and tenure. This study also finds that firms run by CEOs with military experience take more corporate risk. On the CEOs’ social capital side, this study’s results suggest that both political and educational connections are positively related to corporate risk-taking. Originality/value This study also tests some traits that have usually been ignored by the literature, such as marital and family status.